Frequently asked questions

Below we highlight the answers to the most frequently asked questions. If you cannot find the answer to your question, please feel free to contact our loan advisors by calling +372 600 2919 or by sending an e-mail to [email protected].

Loan information

MONEYZEN is a peer-to-peer lending platform, which enables people to lend and borrow money to each other. The terms social lending and direct lending are used to describe the activity as well. The portal provides services to lenders (investors) as well as the borrowers.

The earned interest rates on the consumer loans are much higher than of the bank deposit. However, the risk of losing money is also higher compared to the bank deposit.

MONEYZEN is:

1. Simple, fast and flexible
Money moves fast in the financial portal and operations are simple and handy; you can choose the conditions most suitable for you.

2. Convenient
MONEYZEN is a web-based solution; you can perform all operations in a computer with secure internet connection.

3. Advisory
We approach your loan application personally and provide advice about getting the better loan terms.

MONEYZEN enables loans to 18-73 year-old persons, who have a regular monthly income and capability to fulfil their loan obligations in a timely manner. If your employment agreement contains a condition of probationary period, the probationary period must be completed to obtain credit. Loans are granted to borrowers who have diligent payment behaviour.

MONEYZEN is a peer-to-peer lending portal enabling direct lending between people. As a new and rapidly developing environment, it allows fast and flexible financial agreements without the assistance of unnecessary mediators.

MONEYZEN financial portal enables fast and simple applications of unsecured loans in the amount of 500 – 10 000 euro with a repayment period of 3 months – 3 years.

It is possible to apply for a loan in the amount of 500 – 10 000 euros from MONEYZEN.

The loan period in the MONEYZEN financial portal is 3 months to 3 years (from three months to three years).

Applying for a loan is easy and convenient:

  • Choose the loan amount and period you want.
  • Select the suitable loan amount and period.
  • The portal will search for the loan offer that best suits your needs.
  • If the loan offer is suitable for you, accept and sign it. If the offer is not suitable for you, cancel the loan request.
  • MONEYZEN will make the loan payment to your MONEYZEN virtual account.
  • To use the loan amount, transfer it from your MONEYZEN virtual account to your personal bank account.

Based on the data provided to MONEYZEN, a credit score is assigned to the loan applicant, on the basis of which the MONEYZEN portal can collect personalised loan offers from investors. The credit score is the MONEYZEN portal’s score against which the portal mediates loan applications and offers.

MONEYZEN collects and thoroughly analyses information on each borrower’s payment and creditworthiness to determine the borrower’s actual financial situation and the suitability of the proposed solution to his/her credit interest. We therefore ask for your understanding of the background checks carried out by our loan officers.

Loan repayments must be made on time, in accordance with the loan agreement, from your personal bank account to the MONEYZEN virtual account.

The loan repayments will be automatically transferred by the portal from your MONEYZEN virtual account back to the MONEYZEN portal investors.

Please take care that your monthly repayments are made on time!

Life is constantly changing and sometimes situations can arise that none of us could have foreseen. If you need to change the terms and conditions, please contact MONEYZEN Customer Support.

We also ask you to contact us promptly if your contractual obligation – loan repayment – may be delayed.

You can find the instructions for digital signing here:

https://www.id.ee/en/rubriik/signing/

If the total amount of outgoing payments related to your transactions in a calendar month exceeds 15 000 € for a private individual and 25 000 € for a legal entity, direct identification (face-to-face) is also required. Direct identification is possible at the MONEYZEN office.

MONEYZEN reserves the right to request from the borrower finding a surety provider for the loan agreement. The conditions that are set for surety provider are the same as for the borrower.

Suretyship is a promise by one party to assume responsibility for the loan obligation of the borrower if the borrower defaults. Surety provider agrees to pay the loan debt instead of the borrower if the borrower has failed to perform the loan obligations. Loan guarantor’s liability is limited to the loan amount

An interest-only period is a temporary postponement of the loan principal repayments due to unexpected worsening of your financial situation. While applying you may be asked to upload your bank account statements.
Please note, during the interest-only period you do not have to pay the principal, but you still have to pay the interest and maintenance fee. Also, the total period of your loan agreement shall be prolonged by the number of months in the interest-only period.

You can apply for an interest-only period provided you do not have any overdue repayments and there are sufficient funds available on your virtual account for debiting the charge for interest-only period agreement. The length of the interest-only period can be from one to six months. You can apply for an interest-only period only once in six months.

Yes, you can apply for the change of payment date provided you do not have any overdue repayments and there are sufficient funds available on your virtual account for debiting the charge for changing of payment date. Note, you first repayment amount will differ after changing the payment date due to change in the interest amount.

Loan is a financial obligation which incures additional expenses (loan expenses). This means that, in addition to the loan principal, the borrower has to pay the loan-related expenses, which usually include the interest. Loans can be classified differently: based on the availability of security – secured or unsecured loans –, but also based on the period – short-term and long-term loans.

MONEYZEN credit score is the parameter characterising creditworthiness (ability to fulfil financial obligations) of the loan recipient. The calculation of credit score accounts for the payment behaviour and financial data of the borrower. Credit score is used to assess the ability of a private person to fulfill payment obligations. Generally, the higher credit score -the better ability of a private person to fulfil his/her obligations. In case of persons with lower credit score, the likelyhood of payment delays may be higher.

Traditionally, the calculation of credit score is based on income, expenses, existing obligations and monthly repayments of them. Credit score calculation includes other factors, such as profession, information related to the employer and duration of employment, level of education, marital status and number of dependants – these are all circumstances that influence financial income and expenses.

The reason for assigning the credit score is the assessment of the ability of loan applicant to fulfil financial obligations. The better your ability to fulfil obligations, the higher your credit score. Because the possibility of non-repayment of the loan is very low in case of persons with good solvency, the interest rate offered to those persons is usually lower than in case of persons with higher risk.

Traditionally, the calculation of credit score is based on income, expenses, the balance of existing obligations and amount of monthly repayments of obligations, the number of dependants is also taken into consideration.

MONEYZEN investors usually make lower interest rate offers to applicants with higher credit score.

The easiest way of improving the credit score is to analyse your expenses in order to reduce them. Taking additional loan obligations will reduce the credit score.

The option of increasing the income is more complicated, but for interpreneurs it is also a possibility to improve the credit score.

Keerulisem on sissetulekute suurendamise võimalus, kuid ettevõtlikel ja nutikatel on ka siin võimalus seeläbi krediidiskoori suurendada.

Yes, payment defaults affect the credit score. The applicants with settled payment defaults have a lower credit score compared to those without defaults. Granting a loan to an applicant with outstanding payment defaults is unfortunately not possible.

MONEYZEN credit score is personal and can be seen by the loan applicant only.

Submission of a loan application in the MONEYZEN peer-to-peer lending platform is followed by calculation of your credit score. If your credit score is lower than 500, your loan application will not be submitted to investors for making loan offers. In case of a higher credit score, the peer-to-peer lending platform will find all offers of the investors complying with your credit score and loan period and will rank them based on affordability – the offer for loan applicant is composed based on the most favourable conditions of the investors. The offer is submitted via e-mail.

A loan offer is valid for 3 days.

No, MONEYZEN does not grant loans in cash.

The annual percentage rate (APR) is an informative parameter calculated as annual percentage and shows total cost related to the use of loan (interest, loan contract fee, other loan expenses).

As the procedure and formula for calculating the APR of consumer credit loan has been established by a regulation of the Minister of Finance (of Estonia), it must be used by all lenders issuing consumer credit (granting loans to private persons), such as banks, leasing companies or quick loan providers. This means that loan offers of the same type (such as small loan, home loan) submitted by different lenders can be more easily compared.

Annual percentage rate depends on the loan amount, loan term and other conditions – interest, contract fee, any other single or regular expenses, etc. Thus, loans of the same type granted by different lenders (e.g. study loan, home loan, small loan) have different annual percentage rates.

Having accepted the loan offer and concluded the loan agreement, MONEYZEN will transfer the amount to your MONEYZEN virtual account. You can transfer money from the virtual account to your personal bank account.

You can confirm the money transfer from virtual account any time, but transfers to your personal bank account will be validated from Monday to Friday from 9 am to 5 pm.

The borrower is obligated to ensure availability of the neccessary amount on the virtual account in order to fulfil the loan agreement condition. The portal administrator debits an instalment specified in the payment schedule automatically from the personal virtual account of the borrower.

In the case of early repayment, up to 1% of the outstanding principal balance is due if the loan agreement is more than one year to maturity and 0.5% of the outstanding principal balance if the loan agreement is less than one year to maturity.

Yes, MONEYZEN is ready to consider refinancing of customers’ obligations from quick loan companies at more favourable conditions. The preconditions include responsible payment behaviour of the customer, the availability of constant and regular income and the age of 18-73 years. Refinancing is possible in case of accurate payment behaviour and good solvency.

If you have always fulfilled your financial obligations in time, it should not affect the loan decision of a bank. Consumer loan is a common financing method as well as any other loan or leasing. If necessary, MONEYZEN can issue relevant confirmation to our customers that explains the lack of debts and obligations to MONEYZEN.

No. While processing the loan application our loan administrators verify the data and identity of every loan applicant. The ID card PIN-codes are personal information that should be kept secret from anybody else, including your family members.

The greatest risk in borrowing is a situation, in which the borrower cannot fulfil the loan obligations in time. This situation is bad for the lender as well as the borrower. The lender must make additional efforts to receive the loan installments, while for the borrower repayment of the loan will become more expensive due to the fees related to late payments and penalties.

Life is constantly changing and sometimes unforeseeable situations can occur. In case there is a risk that the contractual obligation of loan repayment could delay, please contact our loan advisors at +372 600 2919.

In case of late payments, the MONEYZEN debt administration procedures will be applied, which include sending the notice of debt through various channels, the borrower is charged for the notices of debt. The borrower should inform MONEYZEN of the possible delay and date of debt liquidation.

The data submitted to MONEYZEN is confidential and shall not be disclosed to third parties. The data is stored in highly secure servers, which can be accessed via restricted security measures.

The MONEYZEN fees are specified in personal loan offer. Concluding the loan contract, you will have to pay a contract fee, which includes fee for the credit score and the ZenFund payment. A loan shall be repaid in monthly installments. For using the loan amount you shall pay interest and the loan administration fee. In case of late payments, the penalty and reminding fees will be charged according to price list.

1. Fulfill your financial obligations in time.
2. Try to minimise financial obligations, especially those with high extra costs (high interests or fees).
3. Do not make snap decisions when taking financial obligations.
4. Consider new obligations carefully, accounting for your income and expenses.
5. Consult with specialists before making a financial decision.

The complaint can be submitted according to the Order of submission of complaints which is part of the general conditions of MONEYZEN.

Investing guide

MONEYZEN is a peer-to-peer lending platform, which enables people to lend and borrow money to each other. The terms social lending and direct lending are used to describe the activity as well. The portal provides services to lenders (investors) as well as the borrowers.

The earned interest rates on the consumer loans are much higher than of the bank deposit. However, the risk of losing money is also higher compared to the bank deposit.

Investing is a purposeful increase of financial assets, but each investment is also related to a risk of losing capital. Therefore, the risks of every investment option should be considered carefully in order to make deliberate and well-considered decisions.

If you have no experience in investing, we recommend reading first the investment advice provided by the Financial Supervision Authority and an overview of investment risks.

Any citizen or a permanent resident of the European Economic Area who is at least 18 years of age, or a legal entity established in the respective register in a Member State of the European Economic Area can invest via MONEYZEN.

If you are registering for the first time, you can submit a request to register a legal entity at the same time. If you are already registered as a natural person, you can submit a request to register a legal entity. To register a legal entity, you need to submit a document certifying the right to represent the company.

Investing via MONEYZEN lending portal is simple and clear – besides experienced investors it is feasible also for active housewives or elderly people, for example.

If you are not experienced in investing, please review Financial Supervision Authority guidance how to start investing and the overview of investment risks.

As a natural person, you can start investing with 20 euros, but we recommend starting with larger amounts, such as 100 euros. For legal entities we also recommend starting with larger amounts. If you do not have previous investment experience, contact our advisors for advice and initially prefer investment strategies with lower risk.

If total outgoing payments from your account exceed 15 000 euros per calendar month in case of private person and 25 000 euros in case on legal entity, the direct verification of your identity (face-to-face) is required. The identity can be directly verified at MONEYZEN’s office.

The money, which you have transferred to the MONEYZEN portal, belongs to you.

You can transfer it back to your personal bank account whenever you wish. General terms and conditions regulate the use of money in the virtual account – MONEYZEN uses your money only within the agreed investment conditions.

Investment repayments belong to you.

All repayments of investments belong to you according to the general terms and conditions. In case of investments, you should take into account the fact that they will be collected as repayments from the borrowers during the loan period specified in the investment terms.

Debtors are handled until the debts are collected.

MONEYZEN manages your investments in the best way. MONEYZEN actively deals with indebted borrowers until the debts are collected.

Compensation fund ZenFund may compensate for the loss of initial capital.

If, as a result of legal proceedings, you do not recover your original investment amount, the ZenFund may compensate you for this loss.

Investing via MONEYZEN is simple and includes three steps

1. Register
Register as a user on the portal. We will grant you access to the internal environment of MONEYZEN.

2. Transfer money to MONEYZEN portal
Please use your personal reference number for the transfer on the payment order. Your reference number can be found in the Transactions menu of your personal account.

3. Set investment terms
After receiving the money in the virtual account of the portal, you can set your investment terms in MONEYZEN: loan type, credit score of a loan applicant, loan period, interest rate and the maximum investment amount per loan agreement. Under these conditions, MONEYZEN will start making offers to loan applicants.

To invest, you can choose an investment strategy: core (low risk), plus (medium risk) or ultimate (high risk). The difference is in which credit rating ranges the money is invested.

In a low risk strategy, money is invested in higher credit score ranges (701-1000). In this case, the investment has a stable moderate return, the quality of the portfolio is very good.

In the case of a medium level of risk, in addition to high ranges, investments are also made in the riskier credit score ranges (601-1000). In this case, the loan portfolio is balanced with risk diversification.

In the case of a high level of risk, in addition to high and medium ranges, investments are also made in the most risky ranges of the credit rating (501-1000). In this case, the loan portfolio is the most diversified, offering higher returns, but it must be taken into account that the share of bad loans in the portfolio may be higher than the average.

You can adjust the investment strategy to your personal preferences at any time.

After confirmation of investment criteria and collection of money on investment account, the portal will start immediately making loan offers to loan applicants. Loan offers are made automatically. You do not need to waste your time in the computer – in case of a suitable loan application MONEYZEN will make the offer based on your set investment criteria. Your money will grow, while you can deal with the activities you like.

Credit score is a parameter characterising creditworthiness of a borrower, the calculation of which is based on the payment behaviour and financial data of the borrower. Credit score is used for assessing the ability of a natural person to fulfill his or her payment obligations. Generally, a higher credit score shows ability of a person to fulfil his/her obligations well. In case of persons with lower credit score, the fulfilment of obligations may be difficult.

MONEYZEN divides loan applications into five groups based on the credit score:
– Low risk 901–1000
– Low medium risk 801-900
– Medium risk 701-800
– High medium risk 601-700
– High risk 501-600

Credit score 901–1000 shows that this is a loan applicant with the highest credit score (with low risk), in whose case the risk of delay and insolvency is the lowest, while credit scores 500–600 show higher risk.

The credit score is usually calculated on the basis of income, expenses, the volume of outstanding liabilities and the amount of monthly repayments of liabilities. Other factors and circumstances that may affect income and expenses are taken into account.

MONEYZEN the co-financing portal follows the principle of responsible lending while processing the loan application.

After submitting a loan application at MONEYZEN, the credit score of the loan applicant will be calculated. If the credit score of the applicant is lower than 500, the loan application will not be submitted to investors for loan offers. If the credit score is higher, the portal will find all offers of investors matching the credit score of the applicant and the loan period of the application, and will rank them based on interest rate from lowest rates to the highest. A loan offer is composed at the most favourable conditions – offers with lower interest rates first.

A loan applicant is entitled to accept a loan offer during three days from the date of the offer. During this period the sum of your loan offer shall be reserved

When MONEYZEN makes a loan offer at the account of your investment portfolio, your money will be reserved to the extent of the offer until the applicant accepts the loan offer. You cannot use the reserved money. Money can be reserved for up to three days, after which the loan offer will be cancelled and you can use the money for investment again.

Your revenue comes from interests on granted loans, for which you set the investment terms. The minimum interest rate you can set in the investment terms is 5%. Because MONEYZEN is an unsecured loan , it is likely that some borrowers may not be able to fulfil their obligations resulting in a loss , in which case you can lose both interest revenue and the principal balance. By setting up your portfolio, you can see the market interest rates offered by MONEYZEN according to credit score ranges.

Like all other investment opportunities, there are some risks involved in investing via MONEYZEN. These could be, for example, inability of some borrowers to pay back the loan (credit risk) or insolvency of Moneyzen OĂś administering the MONEYZEN portal (operational risk).

Realisation of a credit risk of a borrower means complete or partial write-off of the loan (i.e. loss of money) for the lender. No peer-to-peer loan portal in the world has been able to eliminate this risk, nor have the credit institutions. The borrower’s credit risk lies with the lender.

In case of realisation of the operational risk of the loan portal, the portal may be unable to continue operating. No portal can provide a definitive guarantee even in the case of a very large fixed capital and profitable operations, yet long-term operation of the company operating the portal, professional and experienced management, supervision, and other circumstances suggest that operational risk is lower if compared to competitors.

Credit risk is the possibility that an obligation will not be paid back. In case of the realisation of credit risk, the lender receives a loss either in full or in part.

In order to assess the credit risk of a borrower, we use the method applied in the financial sector, but with several improvements. This does not mean that our approach is impeccable, but we are constantly striving to use the best possible methods in order to bring credit risk of borrowers to the minimum level.

In order to assess the credit risk, a credit score is assigned to each loan applicant, which is a parameter indicating the creditworthiness of the borrower. This is calculated based on the payment behaviour and financial data of the borrower. Credit score is used for assessing the ability of a individual’s to meet payment obligations. Generally, a higher credit score shows ability of an individual to fulfil his/her obligations well. In case of persons with lower credit score, the fulfilment of obligations may be difficult.

Diversify your money between many borrowers. By investing your money between several borrowers with a suitable risk level in small amounts, you reduce the impact of credit risk associated with one borrower on your investment portfolio.

To achieve this, invest in all credit scoring ranges with the maximum possible loan period, but set the amount to be invested in each loan smaller. In this way, each individual defaulted loan agreement would affect the performance of the entire investment portfolio as little as possible.

MONEYZEN aims to keep debt to a minimum, but we cannot completely rule it out. As a result, from time to time, some borrowers may find themselves in a situation that adversely affects their ability to pay and the loan repayments may be delayed.

The MONEYZEN portal has developed a comprehensive debt proceeding scheme, which is applied in case of all late payments. Debt proceeding includes communication with the debtor – before the payment deadline we inform the borrower of the approaching payment deadline and send the reminder in case of payment delay. MONEYZEN uses reminder messages, e-mails and letters; other obligatory proceedings include phone contact or meeting with the debtor, publication of the debtor’s details in the payment default register and, as a last step, court proceedings. Similar debt management procedures are used in credit institutions and other financial companies.

You can find service fees applied to investors in the MONEYZEN price list.

In the list of credits, you can see a variety of statuses of credits. To better understand them, MONEYZEN offers explanations for them.

  • Zen – means that the borrower has fulfilled all obligations arising from the loan agreement on time.
  • Zen-1 – means that 1 installment has not been paid on time under the loan agreement (incl. Partially)
  • Zen-2 (… and so on) – means that there are 2 installments overdue under the loan agreement (incl. Partially)
  • Debt collection – covers loan agreements from 90 day overdue until the termination of the agreement by MONEYZEN for non-payment.
  • Legal action – means that the debtor has been the subject of a recovery action, including transfer to court and / or the initiation of enforcement proceedings or the conclusion of a payment schedule with the debtor, either as a judicial compromise or on the basis of a court decision, in some cases out of court.
  • Repaid – the loan has been repaid according to the loan agreement.
  • Resolved early – the loan has been repaid before the due date according to the agreement.
  • Resolved Withdrawn – the borrower has withdrawn from the loan agreement and repaid the loan.
  • Resolved Legal action – the borrower has entered the status of legal action and as a result of this the loan has been repaid.

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